Kuwait issues order to cap food delivery fees

Regulatory Framework Introduction - Kuwait's Ministry of Commerce and Industry has established a regulatory framework for restaurant and ready-made food delivery services, which includes limits on platform commissions and fees, and cancels side agreements and exclusive arrangements [1][2] Objectives of the Regulation - The primary goals of Ministerial Decision No. 10 of 2026 are to protect consumers, support the national commercial sector, and create a fair and transparent environment [2] - The decision was made after monitoring and analyzing the restaurant and ready-made food delivery market, revealing monopolistic practices and unfair tactics that disrupt competition and harm both merchants and consumers [2] Identified Issues in the Market - The assessment identified several issues, including unjustified commission hikes, exclusive conditions, lack of transparency in fee calculations, and discriminatory technical mechanisms affecting visibility within applications [3] Binding Nature and Oversight Mechanisms - The ministerial decision is binding and serves as the legal basis for regulating food deliveries through electronic platforms, including oversight mechanisms and a penalty system ranging from warnings to closure and license revocation [4] Licensing and Fee Structure - All licensed companies must amend their license activity to "Management of Delivery Services via Electronic Platforms" within two months of the regulation taking effect [5] - The decision fixes fees and commissions for three years as a corrective measure to restore market stability and protect SMEs [5] Annual Tariff and Documentation Requirements - Service providers are required to adopt a single annual tariff approved by the ministry, detailing fees, commissions, maximum limits, and calculation mechanisms [6] - Platforms must document all fees in clear written contracts, maintain annual price lists, avoid price changes during the year, and treat unlisted fees as legally null and void [6]